Note:We have included several banking laws which are not in the bar coverage. Likewise, we have incorporated several laws on non-bank financial intermediaries. Since they are not covered by the bar exam, the reviewee has the option of not reading them.

Banking and Finance in General

Two types of financing

1.equity

2.debt-financing

• A cross-breed of the two may also occur.

Intermediaries

1.Banks

2.Non-bank financial intermediaries

3.Exchanges

4.Others i.e. secondary markets

Function of intermediaries

1.“Brokering” or matching investors with those in need of financing

2.Help in diminishing risks to investors

3.Provide liquidity

New Central Bank Act

Republic Act No. 7653
Approved 14 June 1993

In General

Mandate

• The Bangko Sentral ng Pilipinas is the State’s central monetary authority, mandated in the 1987 Constitution, which shall function and operate as an independent and accountable body corporate in the discharge of its mandated responsibilities concerning money, banking and credit. [Section 1, RA 7653]

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